Thread: Market Research
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Old 08-10-2008, 10:26 PM   #6 (permalink)
Paul Elliott
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Quote:
Originally Posted by KristineS View Post
I see the restaurant thing all the time where I live. There are a couple of locations where restaurant and after restaurant has failed and people still keep starting new ones. It seems like after three or four had failed in that location someone would get wise to the fact that maybe that particular location is not a good one for a restaurant.
Yes, it may simply be the location, though it just as easily due to poor planning on the part of the restaurant operators. I can usually eat a single meal at a restaurant and tell you about how long it will last or whether it will be successful. That has little to do with the decor and only a little more to do with the food and service.

Problems with the location are sometimes subtle. Frequently a lot can be told by simply spending a few hours observing the traffic patterns around such establishments.

For example, one location with which I'm familiar, appeared to have plenty of drive-by traffic. Unfortunately, that's all the traffic did--drive by. There were few tourists passing by on this highway looking for a meal.

As it turned out, the traffic was either going to work after breakfast or back home to eat supper. As it turned out the restaurant offered a very efficient drive-by/take-home service in the evening which gradually produced more dine-in customers. Still a major part of their business is taking food home for supper.

Of course, parking and visability also play an important part. I have also seen restaurants opening in places where others have failed suffer the poor reputation of those that have been there previously.

Where one has previously failed the new owners/operators must work harder, perhaps much harder, to convince the passing public that they are different AND better--worth another try.

Paul
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